Crypto Exchange Kraken Secures VARA License to Launch in Dubai

In brief

• Payward, Kraken's parent company, secured preliminary regulatory approval from Dubai's Virtual Asset Regulatory Authority (VARA).
• Services will include spot and margin trading, OTC, staking, transfers, and institutional offerings through Kraken Prime.
• UAE customers can fund accounts and withdraw in dirhams through a locally regulated subsidiary.

Cryptocurrency exchange Kraken said Thursday that it has secured regulatory approval to operate in Dubai after its parent company Payward received preliminary broker-dealer and investment management authorization from the emirate's Virtual Asset Regulatory Authority. The authorization permits Kraken to offer virtual asset services to both retail and professional investors in Dubai, according to a company announcement. The exchange will provide United Arab Emirates clients with spot and margin trading, over-the-counter services, staking, crypto transfers, and access to its institutional platform Kraken Prime. UAE traders will connect to Kraken's global order books across Europe, the United States, and Asia-Pacific markets. Customers can fund accounts and make withdrawals in dirhams through Payward FZCO, the locally regulated subsidiary.

The company plans to expand its Dubai offering to include derivatives, lending, and new investment products for qualified clients.  “Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class,” said Payward and Kraken Co-CEO Arjun Sethi, in a statement. “That clarity is why real liquidity and institutional capital now sit in the UAE. Operating under VARA puts Kraken inside that perimeter, serving clients through a local, supervised entity rather than from offshore.” The executive contrasted Dubai's framework with other markets.

"Clients in the UAE get the same order book, the same balance sheet, and the same multi-asset coverage we run in every other market," Sethi said. "The difference is that the rulebook is written down and the supervisor is local." Dubai established VARA in 2022 to regulate digital asset businesses, creating one of the world's most comprehensive crypto frameworks. The authority has since licensed major exchanges including Binance, Crypto.com, and OKX as the emirate builds its position as a Middle Eastern crypto hub. VARA's licensing categories cover trading, custody, and advisory services. The framework has attracted firms seeking regulatory clarity amid uncertainty in other jurisdictions, with institutional players particularly drawn to the defined operational requirements. Kraken joins several crypto firms recently navigating Dubai's regulatory landscape. Ripple gained VARA approval for its RLUSD stablecoin earlier this year, while Animoca Brands secured a license as the authority tightened oversight measures. The regulator has also demonstrated enforcement capabilities, ordering KuCoin in March to cease services to Dubai residents for operating without proper authorization. Kraken filed last November for a still-pending U.S. IPO after raising $800 million in fresh funding at a $20 billion valuation. Payward also recently filed for a national trust bank charter from the U.S. Office of the Comptroller of the Currency.